e most innovative companies.. The company had managed to hoodwink everyone, from its employees, to investors to financial analysts and regulators, including the governments of various countries. The reason for the fraud was that the company had, over a periWhen people think about fraud, their minds immediately make up images of shady conmen, extracting money from the elderly and the unsuspecting. A few might conjure images of the sweet talking lad, who swindles money using "schemes" or the new age internet scammer who might use technology to dupe online customers or bankers using various schemes like phishing etc. But the greatest amount of fraud - measured in terms of monetary value - is done by the corporations of the modern world. Let's take a brief look at two of the world's biggest and most high profile corporate frauds in recent times.

Accounting Fraud

The first thing that crops up in the minds of people when the word accounting fraud is mentioned is that of the energy company, Enron. Enron, a multi billion dollar company, was becoming one of the largest energy trading companies in the world. Few suspected that such a huge conglomerate would face one of the biggest crashes in recent history. In fact many magazines had even praised Enron as one of the most innovative companies.. The company had managed to hoodwink everyone, from its employees, to investors to financial analysts and regulators, including the governments of various countries. The reason for the fraud was that the company had, over a peri

mmer who might use technology to dupe online customers or bankers using various schemes like phishing etc. But the greatest amount of fraud - measured in terms of monetary value - is done by the corporations of the modern world. Let's take a brief look at two of the world's biggest and most high profile corporate frauds in recent times.

Accounting Fraud

The first thing that crops up in the minds of people when the word accounting fraud is mentioned is that of the energy company, Enron. Enron, a multi billion dollar company, was becoming one of the largest energy trading companies in the world. Few suspected that such a huge conglomerate would face one of the biggest crashes in recent history. In fact many magazines had even praised Enron as one of the most innovative companies.. The company had managed to hoodwink everyone, from its employees, to investors to financial analysts and regulators, including the governments of various countries. The reason for the fraud was that the company had, over a peri

wo of the world's biggest and most high profile corporate frauds in recent times.

Accounting Fraud

The first thing that crops up in the minds of people when the word accounting fraud is mentioned is that of the energy company, Enron. Enron, a multi billion dollar company, was becoming one of the largest energy trading companies in the world. Few suspected that such a huge conglomerate would face one of the biggest crashes in recent history. In fact many magazines had even praised Enron as one of the most innovative companies.. The company had managed to hoodwink everyone, from its employees, to investors to financial analysts and regulators, including the governments of various countries. The reason for the fraud was that the company had, over a peri

ti billion dollar company, was becoming one of the largest energy trading companies in the world. Few suspected that such a huge conglomerate would face one of the biggest crashes in recent history. In fact many magazines had even praised Enron as one of the most innovative companies.. The company had managed to hoodwink everyone, from its employees, to investors to financial analysts and regulators, including the governments of various countries. The reason for the fraud was that the company had, over a perie most innovative companies.. The company had managed to hoodwink everyone, from its employees, to investors to financial analysts and regulators, including the governments of various countries. The reason for the fraud was that the company had, over a period of time, started to lose more money as its cash flow dried up. To cover up the losses, the company, with the connivance of its accountancy firm Arthur Anderson, tried to "cook the books", showing profits out of nowhere and using techniques, that were later described as innovative accounting practices. It was also seriously involved in various bribery scandals in different countries.

As news started to get out via whistle blowers, the company was in deep trouble and it filed for bankruptcy, the largest in American history. Share prices fell from nearly $90 to less than 30 cents as news spread of its failure. Many of its employees - who ironically had rated it as the best company to work for, in a previous report - also found they had lost their entire life savings. Many investors and stakeholders were furious and the crash caused a ripple in the stock markets in 2001. The company and its accountancy firm were soon wound up and criminal investigations were initiated.

A similar method of accounting frau